IT Project Return Calculator

Calculate the potential return on investment (ROI) of IT projects, taking into account staff time savings and business impact.

Input data

  1. Number of employees:
  2. Average hours per month on routine tasks:
  3. Average hourly rate (€):
  4. Annual revenue (€):
  5. Investment costs (€):
The calculations are indicative. For more detailed information, please contact consultant.

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How is the return on investment (ROI) of IT projects calculated?

In this case, the ROI is calculated using the formula:

ROI = ((Total savings - Investment cost) / Investment cost) × 100

  • Total savings = Employee savings + Business impact
  • Staff savings = (Number of staff × Average hours × Average rate ×12)
  • Business impact = Loss (1%) + Profit (5%) + Revenue (20%)
  • Investment costs = Value entered by the user

What is ROI and how is it used in IT projects?

Return on investment (ROI) is a financial indicator that measures the efficiency of an investment by comparing its costs with its benefits. ROI is calculated as the percentage increase that represents the return on investment. ROI is an essential tool for assessing how well an investment is able to generate financial benefits relative to the resources invested. In the context of IT projects, ROI is often used to assess the impact of technology investments on a company's performance and profits.

In IT, ROI measures not only financial results, but also the benefits of digital transformation, such as work process automation, technology upgrades, improved customer satisfaction and employee productivity. These intangible benefits can be just as valuable as direct financial benefits. ROI is essential for making informed decisions about IT investments and their alignment with a company's long-term strategic goals.

How does the ROI calculator help justify IT projects?

IT projects often require a large investment and an ROI calculator can help to show the ratio of potential benefits to investment. Using this calculator, you can estimate the labour savings as well as the impact on the company's financial results, helping you to determine whether the investment is worthwhile.

The ROI calculator allows you to measure both direct financial benefits and indirect benefits, such as efficiency improvements and process optimisation. It is a useful insight to quickly evaluate the development of an IT system.

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